EAA Funds Answers

Q. What are Education and Administrative Allowance (EAA) funds?

A. The Educational and Administrative Allowance funds are funded by various assessments of campus departments by campus or University administration. The source of the revenue and budget in these funds mainly consist of administrative overhead charges assessed to various auxiliary units, as well as other miscellaneous sources.

Q. How are Education and Administrative Allowance funds identified in Banner?

A. Educational and Administrative Allowance funds have a 2A ("Educational and Admin Allowances") fund type in Banner. These funds can be identified in Banner by examining the Fund portion of the C-FOAPAL. The fund code for these Administrative Allowance funds falls under the 20020x fund code range. The current list of 2A funds includes the following funds:

Q. What types of transactions are allowed on Educational and Administrative Allowance funds?

A. Since these funds are sourced from administrative overhead assessments, they should only be used for administrative-type expenses to support the applicable campus to which the fund is tied. The spending on these funds is under the responsibility of the applicable campus budget office or University Administration budgeting (UAFR Admin Accounting). UAFR - UAS' role is basically to gather information for the Budget Offices to develop their recovery rates, and to post the assessments to the campus units. The Budget Office is then responsible for determining how these funds will be used.

Q. How are the budgets for Educational and Administrative Allowance funds assigned?

A. The Budget Office on each campus is responsible for assigning EAA budgets to the applicable units who receive this funding. For further details, contact your campus Budget Office.

Q. How can I tell how much money I have left in my Educational and Administrative Allowance funds to spend?

A. The Expense Budget Balance Available (BBA) indicates the amount of funding available to spend and can be found in View Direct, Eddie, and Banner. Available on the OBFS website is a guide to finding your "Accounting String" balance . This guide explains the different applications that can be used to identify this balance.

Q. If our Educational and Administrative Allowance fund has funds available at the end of the fiscal year that we did not spend, does this available budget balance roll forward to the next fiscal year?

A. The unspent balance in your EAA funds at the end of a fiscal year rolls over to the next fiscal year as beginning expense budget, so these funds are available to spend in the following fiscal year. The expense budget balance available rolls over automatically as part of the fiscal year end closing process after the previous fiscal year is closed. The expense budget balance available posts as budget into account code 109910 - Budget Balance Forward. If the balance in this account code is positive, the fund has a positive carry-forward balance, and money is available to spend. However, if it is negative, then a deficit is carried forward.

Q. Our unit's organization code has changed, and we'd like to transfer our Educational and Administrative Allowance budget to our new organization code. How can we get this accomplished?

A. The Budget Office on each campus is involved in this type of transfer. Only the Budget Office has access to transfer these funds to the new organization code.

Q. Can I transfer funds out of my Educational and Administrative Allowance fund and into another fund type? Can I transfer my Educational and Administrative Allowance funds to another unit?

A. No, units are not allowed to perform any types of funds transfers from their Educational and Administrative Allowance funds to other units or other fund types within their own unit. Each campus Budget Office is responsible for these types of transfers. If you need assistance or have questions on performing funds transfers with your Educational and Administrative Allowance funds, contact your campus Budget Office.

Q. If I want to complete an expense transfer to/from an Educational and Administrative Allowance fund, what rule code should I use on the EAA fund side of the JV?

A. Rule code 100 ("JV - Local Funds") should be used with the EAA fund for expense transfers from/to an Educational and Administrative Allowance fund

Q. If we use a specific program code with our Educational and Administrative Allowance funds, is it allowable to also use that same program code with our state or ICR funds (or vice versa)?

A. Yes, it is allowable to use the same program code with both your Educational and Administrative Allowance funds and your state or ICR funds as long as the NACUBO function is identical and is allowable for the fund types involved.

Q. I have a question that is not on this listing. Who do I contact?

A. All other questions regarding Educational and Administrative Allowance funds can be directed to University Accounting and Financial Reporting, 217-333-4568.

You can view the University Accounting and Financial Reporting "Who to Ask List".

ICR Funds Answers

Q. What are "ICR" funds?

A. Indirect Cost Recovery funds (or "ICR funds," as they are commonly referred to) are funds which the University collects from the indirect cost recovery (F&A) rates charged to grant funds. These fees are charged to cover the University's overhead costs. The amounts billed to grant funds are based on a percentage of eligible direct expenses. These indirect costs are charged as an expense to the grant fund using an expense account code in the 1981xx account code range, and revenue is recognized in the ICR fund using an account code in the 3088xx range. A portion of the revenue is allocated back to departments from the applicable campus Budget Office as expense budget.

Q. How are indirect cost recovery (ICR) funds identified in Banner?

A. Indirect Cost Recovery funds can be identified in Banner by examining the Fund portion of the C-FOAPAL string. The fund code for ICR funds is 200250. This fund has a 2C ("Institutional Costs Recovered") fund type. All units use this same 200250 fund code along with their unit specific organization and program codes to identify and track their specific departmental activity.

Q. How does my department track expenses related to ICR funds?

A. Since all University departments with ICR funding uses the same fund code, specific departmental activity is tracked by using your department's organization and program codes in combination with this ICR fund (200250).

Q. What types of transactions are allowed on ICR funds?

A. The primary purpose of ICR funds is to provide unrestricted support for a unit's core research and administrative operations. ICR funding may also be used for expenditures such as student scholarships/fellowships/awards; student services; operations of maintenance and plant; and public service. However, since ICR funding is generated from indirect cost recoveries from grant funds, it should not be used for instructional activities.

A. The Budget Office on each campus is responsible for assigning ICR budgets to the applicable units based on anticipated ICR earnings. For further clarification, contact your campus' Budget Office.

Q. How can I tell how much money I have left in my ICR funds to spend?

A. The Expense Budget Balance Available (BBA) indicates the amount of funding available to spend and can be found in View Direct, Eddie, and Banner. Available on the OBFS website is the Guide to Finding Your "Accounting String" Balance . This guide explains the different applications that can be used to identify this balance.

Q. If our ICR fund has funds available at the end of the fiscal year that we did not spend, does this available budget balance roll forward to the next fiscal year?

A. The unspent balance in your ICR funds at the end of a fiscal year rolls over to the next fiscal year as beginning expense budget, so these funds are available to spend in the following fiscal year. The expense budget balance available rolls over automatically as part of the fiscal year end closing process after the previous fiscal year is closed. The expense budget balance available posts as budget into account code 109910 - Budget Balance Forward.

Q. Our unit's organization code has changed, and we'd like to transfer our ICR budget to our new organization code. How can we accomplish this?

A. The Budget Office on each campus is involved in this type of transfer. Only the Budget Office has access to transfer these funds to the new organization code with a budget transfer. To request a transfer, complete a Budget Adjustment Request (BAR) form and submit it to your campus’ applicable Budget Office. See http://www.obfs.uillinois.edu/budgeting/budget-adjustment-requests/ for further details on how to request these types of transfers.

Q. Can I transfer funds out of my ICR fund into another fund type? Can I transfer my ICR funds to another unit?

A. No, units are not allowed to perform any types of funds transfers from their ICR funds to other units or other fund types within their own unit. Each campus Budget Office is responsible for these types of transfers. The Budget Office is able to complete budget transfers/exchanges between: (1) two sets of ICR C-FOAP strings; (2) ICR and State C-FOAP strings; or (3) ICR and Educational Admin Allowance C-FOAP strings. To request a transfer, complete a Budget Adjustment Request (BAR) form and submit it to your campus’ applicable Budget Office. See http://www.obfs.uillinois.edu/budgeting/budget-adjustment-requests/ for further details on how to request these types of transfers. If you need assistance or have questions on performing funds transfers with your ICR funds, contact your campus Budget Office. Also note that budget exchanges between ICR and self-supporting funds or ICR and gift funds are not allowable.

Q. Can ICR funds be used to establish a quasi-endowment?

A. No, per Section 11.11 of OBFS Policies & Procedures, ICR funds cannot be used to establish quasi-endowments. Since ICR funds are for cost recovery purposes, investing them in a quasi-endowment is not appropriate.

Q. If I want to complete an expense transfer to/from an ICR fund, what rule code would I use on the ICR fund side of the JV?

A. Rule code 100 ("JV - Local Funds") should be used with the ICR fund for expense transfers from/to an ICR fund. Be sure to refer to the document number of the expense you are transferring in the FOATEXT of the JV. Also, remember that it is not allowable to process lump sum transfers through expense account codes on the ICR fund. These types of transfers need to be processed by the Budget Office. An expense transfer should only be completed if you are transferring an actual expense which has an actual document number.

Q. If we use a specific program code with our ICR funds, is it allowable to use that same program code with our state funds (or vice versa)?

A. Using the same program code with both ICR and state funds is appropriate as long as the NACUBO function is allowable for both fund types. However, this could cause a problem in some situations – for example, if the NACUBO function of the program code in question is 1000 “Instruction” on FZMPROG, it is allowable to use with the State fund, but not allowable to use with the ICR fund, as instructional activities are not allowed on ICR funds. To ensure that these types of unallowable situations do not occur, contact UAFR at (217) 3333-4658 to inquire as to whether your particular program code in question can be used with both State and ICR funds.

Q. I have a question that is not on this listing. Who do I contact?

A. All other questions regarding ICR funds can be directed to University Accounting and Financial Reporting 217-333-4568.

If the JV is approved, it will post in Banner. If not, it will roll back as Incomplete status. We recommend users check on their JVs to make sure they are approved and posted in Banner.

Q. How do I access an Incomplete status JV?

A.
You can access the original JV you created, by using one of these three Banner Forms: FGAJVCD (Journal Voucher Entry Form), FGAJVCQ (Journal Voucher Quick Form) or FGAJVCM (Journal Voucher Mass Entry Form).

Q. I completed my JV, why is it now Incomplete?

A. There can be several different reasons why your JV rolled back as Incomplete:

Your JV might be disapproved from an Approval Queue.

See the Check Banner Messages link, which is located on the main screen of Banner on the right hand side under My Links. This will tell you who rejected the JV, when and why.

Access your JV and look at the FOATEXT (Document Text), to see if an officer left a note stating why your JV was disapproved. A contact name and phone number are usually provided so you can work with the officer directly.

You can see the officer who disapproved a JV by going into Banner Form FOIAPPH (Document Approval History) or FOIAPHT (Approval History) and enter the JV# and click Execute Query or F8.

If your JV contains $0.00 sequence(s), the document will automatically roll back as Incomplete status.

Your JV might fail Cross-FOAPAL edits. UAFR personnel should contact the JV originator with the JV number and the reason why. See Table 1 and Table 2 at the end of this document for Allowable Fund Type and Program Code Combinations and Allowable Fund Type and Account Code Combinations.

Contact University Accounting & Financial Reporting at 217-333-4568 for further assistance.

A. No. When a JV has posted, nothing can be done to it. If the posted entry was an error, you will need to create another JV to reverse the erroneous transaction(s).

Q. How do I reverse a posted JV?

A. Before you make the reversal JV, check to make sure the original JV has posted in Banner.

If the original JV didn’t post, a correcting JV is not needed. You just simply need to delete the unposted/incomplete JV.

If the JV has already posted, a correcting JV is needed. See Copying a Journal Voucher Job Aid for step-by-step instructions on how to create a reversal JV.

Q. I'm trying to re-complete an Incomplete JV and receive this Banner error message. What does this mean and what do I need to do?

A. You received the error message because you’re trying to post to a fiscal period that is closed. Make sure your JV has a Transaction Date within the current month or in an open fiscal period. Then you can re-Complete the JV.

Q. I'm trying to complete a JV and receive this Banner error message. What does this mean and what do I need to do?

A. After you close the error message, it takes you back to the record screen. Go to Options/Access Transactions Summary Info (FGIJSUM). Look for the sequence number(s) that has an Error status. Those sequences need to be corrected. Close the FGIJSUM Form. Go to each sequence number with an error status and tab through all the fields in the record. Once all sequences have a Postable status, the JV can be marked as Complete.

Q. I've completed my JV. How can I check its status?

A. There are several ways to check the status of a JV.

Go to Banner Form FGIDOCR (Document Retrieval Inquiry) and type in your JV# and click Next Block. If it pulls it up, it is posted to Banner. If it doesn’t come up, that means it’s not posted to Banner and may either be in an approval queue or sitting in Incomplete status. See QA “How do I access an Incomplete status JV?”

Go to Banner Form FOADOCU (Document by User) to check the status of all JVs you have created. Your User ID, COA & Fiscal Year are prefilled. Change the COA & Fiscal Year if they’re not correct. Enter JV in the Document Type field. SelectIncomplete in the Status field. Click Next Block. It will list all your Incomplete JVs. Notes that it could take several minutes to run a query on this Banner form.

Q. After I clicked Complete, I realized I made a mistake, can I re-call it?

A. It depends. Most JVs go straight to the posting process and should post in Banner. Some JVs require approvals. Go to FOAAINP (Document Approval) form to see if the JV is in an approval queue. You can contact that office and request the JV to be rejected. Then the JV will roll back as incomplete and you can access the JV for editing, correcting and re-completing. Contact University Accounting and Financial Reporting at 217-333-4568 for further assistance.

A. No. You can only process a JV with 1 debit and multiple credits or 1 credit and multiple debits.

Posting JV Entries During The Month Of July

The transaction date determines which fiscal year the transaction will post. Banner JV forms (FGAJVCD, FGAJVCM, and FGAJVCQ) automatically default to the current calendar date as the transaction date. DURING THE MONTH OF JULY, FOR A TRANSACTION TO POST IN JUNE YOU MUST MANUALLY CHANGE THE TRANSACTION DATE TO A JUNE DATE.

For example, a JV entered in July will have a July transaction date as default and it will post on the July statement unless the transaction date is manually changed to a June date.

Q. I processed a JV during the month of July and forgot to change the Transaction Date to a June date. The JV is already posted in Banner. How do I correct the fiscal year?

A. You will need to create two JVs to correct the fiscal year error:

Reverse the original JV with a July date. See Copying a Journal Voucher Job Aid for step-by-step instructions on how to create a reversal JV.

Create a new JV with a June date. See Copying a Journal VoucherJob Aid for how to copy a JV, then change the Transaction Date to a June date. Review the records and complete the JV for posting.

Contact University Accounting & Financial Reporting at 217-333-4568 for further assistance.

Payroll Related JV:

For payroll charges (account code that starts with a 2) you will need to comlete a PZAREDS (Labor Redistribution Form). This is because a payroll charge can have varying degrees of benefits charges that need to be transferred along with the salary.

Non-Monetary Exchange Answers

Q. What is a non-monetary exchange?

A. A non-monetary exchange occurs when the University receives goods or services from an external entity in exchange for provision of goods or services, rather than paying for it in cash or monetary equivalent. Such exchanges may occur independently or as a secondary aspect of other kinds of transactions, such as sponsorship gift agreements, reductions in revenue received or costs incurred for monetary transactions, or gifts-in-kind.

Q. Are trade-ins of equipment considered non-monetary exchange transactions?

A. No. Trade-ins are accounted for as a part of the acquisition in valuing the new asset according to required accounting guidelines and are not considered a separate non-monetary exchange transaction.

Q. Are discounts considered non-monetary exchange transactions?

A. No. Discounts are offered by vendors for volume purchases or as a qualifying educational institution are considered a normal aspect of negotiating a monetary transaction. The University does not give up goods or services in exchange for the price reduction.

Q. What if it appears that a non-monetary exchange is included in a grant or contract agreement; do I report it separately?

A. No. You should consult with your campus Grants and Contracts Post-Award Office. They will collaborate with University Accounting and Financial Reporting to determine if special accounting treatment is needed.

Q. Can there be a gift and a non-monetary exchange to record in the same transaction?

A. Yes, when the gift transaction involves both receiving and providing goods and/or services, a non-monetary exchange is likely to be involved. See Non-Monetary Exchanges in Section 13, Accounting.

Q: When we receive a cash gift and also provide goods or services to the donor that are significantly less than the value of the gift, is a non-monetary exchange involved?

A. Not unless goods or services are also received by the university. Otherwise, the amount of the gift will be recorded only at the amount of cash received minus the value of goods or services provided (with the goods and services recorded as a non-gift.) The remainder of cash received will be recorded in the associated gift fund as “non-gift revenue.” For example:

To help underwrite a conference, a unit receives a sponsorship gift for $10,000 that includes providing the sponsor approximately $2,000 in tickets to attend the conference. A gift transmittal with $8,000 gift and $2,000 non-gift would be sent to the Foundation. The following entries would be posted in the University gift fund:
Dr. Cash $8,000
Cr. Gift Revenue $8,000
Dr. Cash $2,000
Cr. Non-Gift Revenue $2,000

Q. The University policy says that if either party to the exchange fails to fulfill the terms of the agreed exchange, the entire transaction should be penalized or cancelled. What if one party fails to fulfill the terms, but the other party proceeds with providing the goods or services without imposing a penalty?

A. This should rarely if ever occur. If it does, contact University Counsel to determine legal ramifications, and contact University Accounting and Financial Reporting (uas@uillinois.edu; 217-333-4568) to determine proper accounting treatment.

Q. The University policy indicates the goods or services received or given up should be valued at estimated fair market value. How can that value be determined?

A. Potential sources of valuation include cash sales value of similar goods or services, quoted market prices in catalogues or vendor price lists, auction values, independent appraisal, or any other external source that provides the value of an arms-length transaction involving similar goods or services.

A. The transactions will appear as an increase/decrease in the related revenue or expense account codes, with a rule code of 112. There will be no net effect to fund balance or cash. For example:

A unit is charged a reduced rate of $250 per day for use of a local hotel’s conference room (normally rented at $500 per day) for a University-sponsored event in exchange for providing hotel advertising on brochures and flyers publicizing the event (estimated fair market value of $200). The value of the non-monetary exchange is $200 (fair market value of services provided by the University). The entry that appears on the unit’s statement is:

Gift Fund FAQs Answers

Gift Funds Maintenance - Basic Information

Q. I need to set up a new gift fund. What steps do I need to take?

A. There are times when a unit may want to set up a new gift fund in Banner and/or with the University of Illinois Foundation (UIF). To have these new gift funds set up, the unit must complete the appropriate form(s).

The Account Create Form - UIF Gift Account Only is the form to complete when a new gift fund needs to be established at the UIF. In summary, a UIF fund is required in situations where your unit will be receiving gifts/donations from donors. The UIF can establish endowment funds for gifts that are to be held for investment, current use funds for gifts that are available for immediate use, and non-gift funds which are used to process fundraising proceeds. Once these UIF funds are established, the UIF has the capability to sweep the related endowment income, gift, and non-gift revenue from these UIF funds to the related Banner fund in order for the unit to spend the available funds. More details regarding how to establish gift funds in Banner will be detailed later in this section.

In addition, the UIF codes these funds with the applicable donor intent restrictions. For example, if your unit receives unrestricted donations from donors, then your unit would need to have an unrestricted UIF fund established to process these gifts. However, if your unit had donors giving money that was restricted for scholarships, then your unit would need a separate UIF fund established that is restricted for scholarships. These scholarship gifts would then be processed through your applicable scholarships UIF fund (as opposed to your unrestricted UIF fund that was established for unrestricted gifts).

If your unit needs to set up a new gift fund in Banner to receive these income sweeps from the Foundation, you will need to complete steps 1, 2, 5, and 6 on the Fund, Program, Index Code Request Form and email the completed form to newaccounts@uif.uillinois.edu. The UIF will then review these requests and will add the applicable donor intent codes, and they will then forward the requests on to UAFR for completion. Once the Banner fund is established, the UIF will link this new Banner fund to the related UIF fund if applicable (not all Banner gift funds are linked to a UIF fund - see the next paragraph for further details).

Units also may wish to occasionally create a "sub-fund" in Banner that will be funded from another Banner gift fund (as opposed to being funded from a UIF fund). In these cases, the unit does not need to complete the form for creating the UIF fund (since this new Banner fund will be funded via fund transfers from other Banner gift funds, not from the Foundation). However, the request for the new fund still must be sent to newaccounts@uif.uillinois.edu since the Foundation is responsible for adding the applicable donor intent codes to these funds. Once this fund is established, the unit can complete transfers from the related Banner gift fund into this new Banner "sub-fund".

Occasionally, gifts are given directly to the University (i.e., the gifts are made out or left to the "University of Illinois" as opposed to the "University of Illinois Foundation"). These are held as University endowments and the investment income from these endowments sweeps into a 4J endowment income fund. To establish a 4J endowment income fund, simply complete the Fund, Program, Index Code Request Form and email the completed form to newaccounts@uif.uillinois.edu. The UIF will then review these requests and add the applicable donor intent codes, andthen forward the requests to UAFR for completion.

If you have any specific questions on how to complete these forms or how this process works, call either UAFR at (217) 333-4568 or the Foundation at (217) 333-0810.

Q. What will the new fund number on these gift and endowment income funds look like?

A. Gift funds have a 4M ("Trust - Private Gifts") fund type. These 4M funds have a fund number that falls into the 620000 - 699999 range. Other fund types also fall within this numerical range (e.g., 4S - Medical Service Plan funds), so this numerical range is not limited strictly to gift funds.

The endowment income funds, which were defined in the previous FAQ, have a 4J fund type. The fund numbers for these 4J endowment income funds fall within the 610000 - 619999 range. If you have additional questions on these University endowments and the related income funds, contact UAFR at (217) 333-4568.

Q. How do we know which program codes to assign to these new Banner gift and endowment income funds? Also, how do we know whether the current program codes assigned to our existing Banner gift and endowment income funds are correct?

A. The 4M gift funds and the 4J endowment income funds should have default organization and program codes assigned to them (unless a special situation or exception exists). The program codes assigned to Banner gift and endowment income funds are generic placeholders defining the NACUBO function –i.e., we assign generic program codes in the “19xxxx” range to these funds and do not create or assign unit-specific program codes as we do for other fund types. We need to ensure that the program code assigned to these funds is in line with the assigned donor intent restrictions on these gift funds. For example, a gift fund restricted for undergraduate scholarships should have a 191787 program code assigned to it, since 191787 is the default "scholarships" program code per NACUBO guidelines. It is important to be specific about a fund's purpose and restrictions on the new gift fund request form to ensure the Foundation and UAFR assign the correct coding to the gift fund, and that the correct program code is chosen by the unit.

NACUBO vs. Donor Intent Function document contains a grid on two separate tabs which gives more guidance on which default program codes match with which donor intent restrictions. It also details which donor intent functions match with which donor intent objectives. This file should provide good guidance on helping you choose the right program code to assign to your gift and endowment income funds.

Q. If we need to change the fund title, default organization or program code on one of our gift or endowment income funds, how do we get this done?

A. To change the fund title, default organization or program code that is assigned to your gift or endowment income fund, please submit an email request containing the applicable chart and code numbers to be updated, along with details of the changes you would like made, to the UIF at giftadministration@uif.uillinois.edu. Once the Foundation approves the changes, they will update the UIF database and forward to UAFR for completion in Banner. You will be notified via email when the change is complete. You will also need to coordinate with UAFR to ensure all current operating ledger balances on the gift or endowment income fund are moved over to the new organization and/or program code.

Q. Where do we go to see what the donor intent restrictions on our gift or endowment income funds are?

A. There are a couple of places where donor intent restrictions are maintained. If you go to the FTMFATA form in Banner, you can enter the chart and fund number of your gift or endowment income fund, and then click on "Next Block". The first four entries (i.e., the Donor Intent Function, the Donor Intent Flag Field, the Donor Intent Objective, and the Donor Intent Organizational Unit) show you the donor intent code restrictions assigned to your gift fund in Banner. These are simply general guidelines, but this will give you a good start. If you have questions on how to navigate this form, call UAFR at (217) 333-4568.

For a more detailed description of the specific donor intent restrictions assigned to a gift or endowment income fund, visit the Foundation's website (see http://online.uif.uillinois.edu ) and search on either the Banner or UIF fund you are researching. From this website, you can see detailed documents that give specific information on the fund's restrictions. This website does not include information on all Banner gift and endowment income funds - e.g., there would be no information on any "sub-funds" which are funded from other Banner gift funds and not the Foundation - but the primary funds for most units are included here. Contact the Foundation at (217) 333-0810 if you have further questions on how to use this website.

Q. We need to terminate one of our Banner gift or endowment income funds that we no longer use - how do we get this done?

A. A gift or endowment income fund cannot be terminated until all balances and encumbrances have been cleared. Once the fund has been cleared of all activity and balances, send an email request to newaccounts@uif.uillinois.edu asking to have the fund terminated. The Foundation will investigate the fund to ensure that the termination is allowable, and if they approve the termination, they will either terminate the related UIF funds on their database or possibly tie their UIF funds to a different Banner fund if that is what the unit is requesting. They will then forward the termination request to UAFR. Then, UAFR will examine the fund to ensure that all balances have been cleared out, and if so, will terminate the fund.

Gift Fund Deposits - General

Q. Our unit received a gift/donation from a donor - what is the proper procedure for processing and depositing this gift?

A. Gifts/donations must be deposited through the Foundation on a Report of Gift Received Transmittal Form . This includes any type of gift, whether the gift is received via cash, check, credit card, securities, or gifts-in-kind. Once the Foundation receives this form, they will process the gift in their system to ensure that the proper gift acknowledgement letters, tax documentation, etc. are sent to the donor and the donor's giving history is updated. Once they process the gift, they will either sweep the funds into the unit's appropriate Banner fund or add the gift to the applicable UIF endowment.

If the donations that your unit receives are for research gifts, it is important to complete the Research Gift Transmittal Form in addition to the standard UIF Gift Transmittal form. Once completed, the Research Gift Transmittal form must be sent to the Office of Sponsored Programs and Research Administration (OSPRA) along with two original copies of the gift letter from the donor. See the OSPRA FAQs for further details.

For further details on how to complete gift transmittal forms and how the process works, call either UAFR at (217) 333-4568 or the Foundation at (217) 333-0810.

Q. When the Foundation sweeps this gift revenue into our gift fund, what Banner entries are made ? Which account code do these gift revenue sweeps post to?

A. When the Foundation sweeps gift revenue from current use donations into the applicable Banner fund, the year-to-date revenue entry is made to account code 303241. The related budget entries are made to account codes 303241 and 109900. This gift revenue increases the amount of cash available to spend in the gift fund. However, because of the expense budget that is entered, when determining the budget balance available (BBA), revenue should be excluded (i.e., un-check the "include revenue accounts" box on the FGIBDST form). This will be covered in further detail in a later section (see "Determining Available Budget Balances in a Gift Fund").
The Foundation also sweeps to Banner endowment income earned on a UIF endowment balance. These endowment income sweeps are recorded in Banner account code 303240. The budgeted income for the year is posted at the beginning of the fiscal year to account codes 303240 and 109900, and each month, 1/12th of this income is swept as revenue to account code 303240. By the end of the year, the entire budgeted amount (i.e., 12 months worth) is swept to account code 303240. Once again, these monthly sweeps increase the amount of cash available to spend in this fund.

Finally, if any fundraising proceeds are collected (e.g., from a bake sale) and deposited through the Foundation, the UIF sweeps this non-gift revenue to the applicable Banner gift fund using Banner account code 303242. The related budget entries are posted to account codes 109900 and 303242.

Q. Is it ever appropriate to directly deposit money into a gift fund via a Report of Money Received?

A. Typically, proceeds that are credited to a gift fund are swept over from the UIF, since most of the money posted into a gift fund is gift revenue from either current use donations, endowment income, or non-gift revenue from fundraisers. However, a unit may occasionally receive a reimbursement or rebate for an expense that was posted to their gift fund. In these cases, this reimbursement/refund can be deposited directly into the Banner gift fund without going through the Foundation. These deposits are made through the applicable campus' Cashiering office on a Report of Money Received form. These types of deposits (i.e., reimbursements) do not need to be deposited through the Foundation since they are simply reimbursements, not donations or fundraising proceeds. The unit needs to ensure that the funds are credited to the same C-FOAP string where the original expense incurred - this means that the reimbursement must be deposited into the same expense account code that was used for the initial, related charge. Also, it is important to explain in the description of the Report of Money Received form what the deposit is for - i.e., an explanation that this deposit is reimbursing an expense that posted to this applicable C-FOAP string, along with the document number of the original expense being reimbursed.
For example, if a unit received a $20 mail-in rebate on an office supplies expense that was charged on account code 121100 to a unit's gift fund, the unit should deposit the rebate through the Cashiers office directly into the 121100 expense account code on the same gift fund that was used for the initial purchase.The unit must deposit the rebate into the same exact C-FOAP string that was used for the original purchase. The original expense is then offset by the refund/rebate. Also, as mentioned earlier, the unit must explain in the description of the Report of Money Received form that the deposit is a reimbursement towards the initial expense that posted to this C-FOAP string (the description must include the document number of the original expense).

As a final note on this subject, these reimbursements are not revenue, and should not be deposited into a revenue account code. As mentioned earlier, these reimbursements must be deposited into the expense account code where the original expense resides (Note: it is also allowable to post a reimbursement for an expense that was posted in a previous fiscal year.)

Q. Our office deposited gift money into a self-supporting fund - how do we get this gift money out of the self-supporting fund and into the appropriate gift fund?

A. Your unit must complete a Gift Transmittal Form for the gift and forward this, along with any other related gift documentation (e.g., donor letter, copy of the check, etc.), to UAFR. The unit needs to let UAFR know the exact self-supporting fund C-FOAP string where these funds were deposited and the gift fund where this money should be posted. Once this information is forwarded to UAFR, a JV is completed by UAFR to move the gift money out of the self-supporting fund and into the correct gift fund. The related documentation is then forwarded to the Foundation by UAFR so the Foundation can make their matching adjusting entries and update their records. To determine who to contact within UAFR for an adjustment of this nature, call (217)-333-4568.

Q. Our office made a mistake and deposited gift money into a grant fund - what do we do to fix this?

A. The unit must contact their applicable campus' Grants & Contracts Office (GCO) to explain the situation - the applicable phone numbers are as follows: UIUC - (217) 244-4758; UIC - (312) 996-5963; UIS - (217) 206-6558. The GCO will then work with UAFR to post a set of entries to move the money out of the grant fund and into the applicable gift fund. The unit also must complete a Gift Transmittal Form for this gift and send it and any other related documentation (e.g., copy of donor letter, copy of ch eck) to UAFR. UAFR sends this information to the Foundation so they can record their related entries. The gift money is not moved into the applicable gift fund until this documentation is sent to UAFR.

Q. Our office made a mistake and deposited grant money into a gift fund - what do we do to fix this?

A. The unit must contact their applicable campus' Grants & Contracts Office (GCO) to explain the situation - the applicable phone numbers are as follows: UIUC - (217) 244-4758; UIC - (312) 996-5963; UIS - (217) 206-6558. The GCO will then work with both UAFR and the UIF in order to ensure the proper measures are taken to get this grant money back to the GCO.

Gift Fund Deposits - Fundraising

Q. What about proceeds we receive from fundraising events, such as fundraising luncheons, t-shirt sales, bake sales, etc? How are these proceeds deposited?

A. While reimbursements may be directly deposited to a Banner gift fund as described above, proceeds received for events such as fundraising luncheons, t-shirt sales, bake sales, etc. do need to be deposited through the UIF on a Report of Gift Received Transmittal Form . When completing these forms, be sure to include the dollar amount of the total receipts in the “Non-Gift Portion” box of the form (as opposed to the “Gift Portion” box). While these proceeds are not gifts in the traditional sense, they still need to be deposited through the Foundation for tracking purposes. The Foundation processes these receipts in a non-gift fund. After they process the deposits on their end, the Foundation then sweeps these non-gift amounts into the unit's applicable gift fund using account code 303242 ("Fundraising Proceeds from UIF").

Q. What if we hold a raffle during one of these fundraising events? The question above describes how we deposit proceeds from these events, but how do we process the payment to the raffle winner?

A.Section 18.11 of OBFS Policies and Procedures addresses the taxation issues of these types of situations. The payment to the raffle winner is disbursed from the same Banner gift fund that was used to record the initial receipts. Account code 181700 should be charged for this payment. The documentation on the payment needs to be very detailed and should include documentation of the entire transaction, including that of the original deposit.

Fundraising Expenses

Q. What about processing fundraising expenses (e.g., telemarketing expenses, direct mail campaign expenses, etc.) - are there any requirements as to where we can charge these types of fundraising expenses? Do the fund and program codes where we charge these fundraising expenses need to be coded any certain way?

A. Yes, the requirements related to fundraising expenses are covered in Section 11.6 of OBFS Policies and Procedures. These requirements are in place because the University tracks how much we spend in total on fundraising activities. In order to do this, fundraising expenses are posted to specific types of funds and program codes. As Section 11.6 covers in detail, any gift fund that is used to track fundraising must have the word "Fundraising" in the fund title, and the default program code must be either 191399 or 191599. If state or ICR funds are used, then the related program code that is used must have either a 1399 or 1599 predecessor code (Banner form FZMPROG shows you the predecessor code for a specific program code). In addition, the A-21 attribute must be "UFR".

Also, some units may wonder how they can pay for all of these fundraising expenses if there is no related revenue feeding into these fundraising gift funds. To cover these expenses, the unit can simply complete an intrafund funds transfer from one of their unrestricted gift funds to cover their expenses.

Non-mandatory Transfers Involving Gift and Endowment Income Funds

Q. I want to transfer funds from one gift fund (or endowment income fund) to another - are there any limitations on this process? How do I go about completing the JV to process this transfer?

A. Yes, there are limitations on non-mandatory fund transfers involving gift and endowment income funds. University Accounting and Financial Reporting (UAFR) reviews any journal vouchers that involve a transfer of funds to or from a Banner gift or endowment income fund. These reviews are done to ensure compliance with the donor intent restrictions assigned to the specific gift or endowment income fund, as well to ensure that the funds transfer is in compliance with fund accounting rules.
This review and approval process includes examining the donor intent restrictions for the involved gift funds as specified in the UIF database as well as on the FTMFATA form in Banner. If any concerns arise during this review (e.g., if it looks like the transfer would violate the donor intent restrictions), UAFR calls the unit to discuss further and may disapprove the journal voucher, which will send the journal voucher back to the unit for revision or deletion. This review and approval process helps ensure that an unallowable transfer which violates the donor intent restrictions on these gift funds does not occur.
UAFR also reviews these transfers for compliance with fund accounting rules - i.e., it is unallowable to transfer money between Banner funds that have different fund types. For example, while it is allowable to transfer funds from one 4M gift fund to another 4M gift fund, it is not allowable to transfer funds between a gift fund and a self-supporting fund, University endowment income fund, ICR fund, and so forth. The fund types on each type of fund must agree. Banner form FZMFUND is a good place to see what fund type is assigned to the funds in question.
As for the logistics of completing the transfer between one 4M gift fund and another 4M gift fund - on both sides of the JV, use a 417001 account code and a 104 rule code/journal type. Debit (+) the gift fund where the money is coming out of, and credit (-) the gift fund where the money is going into.
Transfers involving 4J endowment income funds (i.e., Banner funds in the 610000 – 619999 fund code range) work in a similar manner, except these transfers use a different account code. If you are trying to complete a funds transfer between two endowment income funds, then use a 417003 account code on both sides of the JV (as opposed to the 417001 account code used on 4M gift fund transfers).

Also note that it is allowable to transfer funds between gift funds on different campuses.

Returning Accumulated Gift Funds to the UI Foundation

Q. We have an accumulated cash balance in our Banner gift fund that we would like to re-invest into the related UIF endowment (or a new quasi-endowment). How do we go about doing this?

A. If your unit does not have immediate use for money that is accumulated in your Banner gift fund, then you may want to consider returning this money to the Foundation for reinvestment into either the related UIF endowment or into a new quasi-endowment. Contact the UIF for further details on this process and the related requirements. Typically, the Foundation recommends only doing this with funds that you can afford to invest into the endowment for a minimum of at least five years (this helps protect against short-term market fluctuations). To complete this return of funds to the UIF, you will need to complete the Banner to Foundation Endowment Pool Transfer Request form . To begin this return process, simply submit the completed form to the Stewardship Services Office as instructed near the bottom of the form. The UIF reviews all of these requests for allowability, and once they approve the return, they then forward the request to UAFR. UAFR then reviews these requests to ensure there is enough money available in the Banner fund to fulfill this request. Once UAFR approves the returns, entries to record these returns are processed in Banner and the funds are wired to the Foundation. This process is typically completed by UAFR near the end of the month.

Refer to Section 11.8 of OBFS Policies and Procedures for further details on this process.

Determining Available Budget Balance in a Gift Fund

Q. How can I tell how much money I have available to spend in my gift or endowment income fund?

A. There are two Banner forms you could use to determine your available budget balance. First, the GL summary is shown on Banner form FGITBSR. This Banner form shows the amount of cash available in the fund, along with the related A/P balance and fund balance. The “D/C” column shows whether this balance is a debit or credit balance. This is helpful when trying to determine whether a fund is in deficit. For example, if “Claim on Cash” balance is a debit balance (a “D” in the “D/C” column), then there is a positive cash balance in this fund. If however, the “Claim on Cash” balance is a credit balance (a “C” in the “D/C” column), then the cash balance is a deficit. If the cash balance is a deficit, this form will also show a “*” in the “*” column, to indicate an amount that is opposite of the normal balance.
You can also use Banner form FGIBDST to determine the available budget balance in a fund. This form shows the budget balances available to spend along with the YTD expenditures and encumbrances, which net out to the amount of money that is available to spend. However, revenue should be excluded from this Banner query, since only the expense and transfer BBA are applicable in this query. When determining the budget balance available, un-check the "include revenue accounts" box on the FGIBDST form. Then, hit the “Next Block” button, and the balance in the “Available Balance” column (which is the sum of the “Adjusted Budget” less the “YTD Expenditures” and related encumbrances) will show you the remaining balance available to spend in this fund.

Q. If our gift fund has funds/gift revenue available at the end of the fiscal year that we did not spend, how does this available budget balance roll forward to the next fiscal year?

A. The unspent balance in a gift fund at the end of a fiscal year rolls over to the next fiscal year, so this money is available to spend in the following fiscal year. This available money rolls over automatically at the beginning of the following fiscal year into account code 109910. This is the carry forward budget balance. If the balance in this account code is positive, then the fund had a positive carry-forward balance, and money is available to spend. However, if it is negative, then a deficit was carried forward – in this case, the unit would need to take the necessary steps to get this deficit cleared with either a funds transfer, additional gift revenue, etc.

Gift Fund Deficits

Q. Is there a penalty or fee if any of my gift funds are in deficit at the end of the fiscal year?

A. At UIUC and UIS, there is no penalty or fee for having a deficit in a gift fund at the end of the fiscal year. While it is never a good idea to run these Banner gift funds into a deficit, it is reasonable to have a manageable deficit in these funds at the end of the fiscal year, as long as a plan is in place to cover this deficit in the coming fiscal year. But, remember that if the deficit is large enough, you may receive a call from the Provost's office to see if you have a plan to take care of the deficit.

However, at UIC, there is a penalty/fee on gift funds that have a deficit greater than $10,000 at the end of the fiscal year. If a department has a gift fund that has a deficit of $10,000 or greater, then a budget adjustment is made to that department's institutional cost recovery (ICR) funds. A fee ranging from 2.0% (for funds with an approved deficit reduction plan) to 3.0% (for funds without an approved deficit reduction plan) of the total deficit amount is charged to the department's ICR funds, and these funds revert back to the Provost's office. The Dean of the College that the department resides in must decide how to address this reduction in the department's ICR funds. For example, if a department has a $25,000 deficit in one of their gift funds at the end of the fiscal year, and they do not have an approved deficit reduction plan in place for that particular fund, their ICR funds will be reduced by $750 to account for the charge for this deficit.

Allowability of Gift Fund Expenditures

Q. Who do we call to see whether or not a certain type of expenditure is allowable to be made from our gift funds?

A. Any expense posted to a University gift fund must be in compliance with the donor intent restrictions assigned to the gift fund. If any questions arise as to whether or not the expenditure would be in compliance with the assigned donor intent restrictions, units can either contact the UI Foundation at (217) 333-0810 or log onto the UIF Online database at http://online.uif.uillinois.edu to look up the donor intent restrictions of the fund in question.

Also, even if there are no objections from a donor intent perspective to these expenditures, the unit still must ensure that the expenditures are in compliance with University policy. If any questions arise as to whether an expenditure is in compliance with University policy, contact University Payables at (217) 333-6583 or see Section 8, Payments and Reimbursements of OBFS Policies and Procedures for additional guidance on allowability of expenditures.

Q. Is it allowable to charge our gift fund for a gift that we are giving to an external charitable organization?

Q. We had a fellow employee/business associate recently suffer a personal hardship, and we would like to send flowers to this fellow employee/business associate showing our condolences. Is it allowable to charge one of our gift funds for this purchase? If we collect donations from fellow employees to cover the cost of the flowers, could we deposit this back into the gift fund we used to purchase the flowers?

A. Per Section 8, Payments and Reimbursements of OBFS Policies and Procedures, it is allowable to use gift and endowment income funds to purchase flowers, plants, fruit baskets, or other similar items to acknowledge employee life events (such as the death of an immediate family member, such as a spouse, parent, or child). However, you would need to ensure that the gift or endowment income fund you are using is unrestricted and does not have any donor intent restrictions that would prohibit this type of purchase.

Also, if you did not want to involve the use of your University gift or endowment income fund, the desirable way to handle these situations is to simply collect donations from fellow employees and use the cash to purchase flowers on your own (e.g., a fellow employee could charge the cost of the flowers on their personal credit card, and then the other fellow employees could give cash to this employee to help cover the cost). This way, the University's gift fund is not involved at all in the transaction, and there would be no related transactions to reconcile on your gift or endowment income fund.

Transfer of Gifts to Another Institution

Q. We have a professor leaving for another institution - is it allowable for the professor to take their gift funds with them? If so, how do we go about processing this adjustment?

A. Whether or not this is allowable depends on the situation. If the original gift was given specifically to the professor who is leaving (as opposed to be given to the University of Illinois in general), then it would be allowable for the professor to take the gift funds with him or her. However, if the gift funds were given to the University or the unit in general, then as the University's gift money, the professor does not have the right to take this money with them. In this instance, in order for the professor to take this gift money with them to the new institution, the donor must give written donor verification allowing the gift to be transferred to another institution. In these cases, all requests for written donor verification must have prior approval of the unit head, and must be obtained prior to the staff member's termination of employment at the University.

Section 11.4 of OBFS Policies and Procedures addresses this topic in detail. In summary, the actual transfer of the gift money would not take place until the staff member has become employed by the accepting institution of higher education. The recipient institution must agree in writing to accept the transfer, and they must confirm receipt of the gift after transfer and agree in writing to honor all original donor stipulations. Only the unencumbered cash balance may be transferred, and copies of the original donor documentation must be included with the transfer to the new institution. The payment to the new institution would simply be made via an invoice voucher. The invoice voucher would use account code 142900 to record the payment, and then UAFR would make a final adjusting entry to move this transaction out of the 142900 account code and over to the 308501 account code (this final adjustment is required to properly impact the budget in the gift fund).

Guide to Terminating FOAPAL Segments

Q. What does it mean when a FOAPAL code is terminated?

A. Terminating an individual FOAPAL code prevents future transactions from posting to that specific code. This includes all transactions: journal vouchers, feeder systems, etc. This might prevent "rogue FOAPALS" by stopping users from using the code by mistake.

A. View the Banner FOAPAL code maintenance forms listed below to determine if a code has been terminated. Select the maintenance form, select enter query, enter the chart and code value, execute query. The date in the "Termination Date" field is the date the code was terminated.

A. No, simply freezing a segment is not possible. The code is both active and valid, or it is terminated.

Q. What if I made a mistake? Can a FOAPAL code be "unterminated" and made active again?

A. Yes, if the code was terminated in error, it can be made active again. However, this can be done only if the code will be used for the same purpose. Generally, FOAPAL codes cannot be reused for different purposes.

Q. Can I terminate an entire FOP (Fund, Organization and Program) combination?

A. No, we cannot terminate or prevent specific combinations of FOAPAL codes. Banner validates each FOAPAL code segment separately. Banner does not validate the entire FOP string as a whole, so we are unable to prevent how combinations of FOAPAL codes are used.

Q. Will I continue to receive monthly statements even though a FOAPAL code is terminated?

A. You will continue to receive monthly statements in View Direct for the remainder of the fiscal year if there has been activity during the fiscal year. If the balance is $0 at fiscal year-end, it will not roll into the next fiscal year and you will then stop receiving these statements.

A. Yes, terminating FOAPAL codes in Banner is very complicated because Banner is an integrated system. For example, if we terminate a FOAPAL code that is used on a Banner Accounts Receivable Detail Code, then the Accounts Receivable feed to the General Ledger will not post. Even though only one of the FOAPAL codes might be invalid, the entire GL feed from AR will not post until it is corrected. Because FOAPAL codes are used in many Banner related systems, we must first ensure that terminating it won't cause a problem in another area.

Q. What are some of the items verified before terminating a FOAPAL code?

Q. I submitted a request for disposal but the item is still on my inventory. Why hasn't it been removed?

A. The reason your item is still on your inventory may be one of the following:

OBFS Property Accounting may be reviewing it - All equipment disposal requests are reviewed by OBFS Property Accounting staff for completeness. Incomplete requests are returned to the department and must be resubmitted.

The request may have been sent to the incorrect address - All equipment disposal requests are to be e-mailed to obfsuafrproperty@uillinois.edu. Requests sent anywhere else may not be processed.

When requests for disposal have not been removed from your inventory in four weeks please resubmit the request with a note that it was previously sent, indicating which item(s) was not removed. OBFS Property Accounting staff will respond with an explanation or advising that the item(s) has been disposed.

Q. Why is an item that I disposed/scrapped still showing up in FABweb?

A. Currently FABweb is showing all assets assigned to your chart/organization code whether or not they have been disposed. In the future, FABweb will no longer display disposed assets.

Q. Why can't OBFS Property Accounting submit disposal/transfer forms to the UIC service desk instead of returning them to the department?

A. The department is responsible for working directly with UIC Transportation to schedule the removal of equipment. Therefore, disposal/transfer requests are reviewed by OBFS Property Accounting staff for accuracy and completeness of information and returned to the department.

Q. Why do we have to put serial numbers on disposal requests for equipment with no Permanent Tag (PTag)?

A. The serial number of disposed assets that have not been assigned a property control number [PTag] provides the best means for OBFS Property Accounting to track assets as they are removed from the University.

A. Yes, surplus equipment no longer needed by the University may be sold but only to not-for-profit organizations and with the permission of the Illinois Department of Central Management Services. Surplus equipment cannot be sold to University employees or for-profit businesses and organizations. A request to donate/sell surplus equipment can be initiated by contacting Jeff Weaver, Senior Associate Director of University Property Accounting & Reporting, at 217-244-7978 or jweaver2@uillinois.edu.

Q. Does the University conduct an auction to sell surplus equipment?

A. No. University surplus equipment is transferred to the Illinois Department of Central Management Services which conducts quarterly auctions out of their Springfield, Illinois facilities. See http://www.state.il.us/cms/ .

Q. A professor has resigned and is leaving the University. Can the research equipment be permanently transferred to another University?

Q. What is the turnaround time for UPAR to process transfer and disposal requests?

A. Transfers and disposals should be completed within 2 weeks of the initial request or 1 week after the actual removal of the equipment from the sending department. There are variables that determine exactly how long it takes to process these documents - scheduling of pick up by movers, scrap metal vendor and backlog of inspections at UIUC. As far as transfers, once the equipment is delivered by Transportation or Movers, the transfer should appear within a week in Banner. Disposals may not be posted as quickly because some disposals are batched and posted once a month. If a transfer or disposal has not been posted in the above time frame, the department may send an email to obfsuafrproperty@uillinois.edu to inquire on the status of an asset record. Users should use the Banner FFIMAST screen to verify changes to the asset records.

Q. Why isn't my transfer/disposal reflected in FABweb?

A. One problem with FABweb is that the FABweb record may not get updated the next day after the Banner fixed asset record is updated. To overcome this problem, after the transfer or disposal is processed in Banner FFIMAST, the sending unit in transfer transactions and the disposing unit in disposal transactions, must go into FABweb and perform an update to the existing asset record by adding a space or some character in the description field and submit it to Banner. Then FABweb will be updated by the Banner record. This is a glitch in the FABweb update process which will be remedied in the future (in a re-engineering of FABweb).

Donations/Loans/Gifts/Personal Use

Q. Can we donate computers to local primary and secondary schools?

A. No. As a rule, the State Department of Central Management Services does not approve requests to donate equipment. However, a request to donate/sell surplus equipment can be initiated by contacting Jeff Weaver, Senior Associate Director of University Property Accounting & Reporting, at 217-244-7978 or jweaver2@uillinois.edu.

Q. Do I add equipment donated to us to our inventory? If so, how do I record it?

A. Yes. Equipment received as a gift must be recorded by completing the appropriate gift form found on the Gift Forms page.

Q. Should I record equipment loaned to the University by an Individual, an Institution, or a Corporation?

A. Yes. Any equipment received on loan from anyone should be recorded in Banner Fixed Asset as a non-cash addition with the correct Title-To code.

A. Yes, but only for University use and with departmental approval can faculty or staff take equipment home. Equipment may be signed out for short period usage. When equipment is to be off campus for one semester or longer, a loan agreement must be completed, signed, and retained by the owning department.

Q. Can the department give a retiree the computer or chair they were using while employed by the University as a retirement gift?

Lost/Stolen/Insured

Q. What do I do when equipment has been stolen?

A. Report the theft of University equipment to the University Police Department. If the stolen equipment is on the departmental inventory, submit a Request Disposal of Equipment as Scrap or Surplus form indicating in the comments section that the listed item(s) was stolen and attach a copy of the police report or a letter from the police department indicating a report has been filed.

Q. Can a department obtain insurance coverage for equipment?

A. Yes. Departments may obtain insurance coverage for equipment by contacting the University Office of Risk Management at 217-333-3113.

Q. Is University equipment insured for loss due to theft or casualty?

A. Generally, no. However, departments may obtain insurance coverage for equipment accompanying an employee traveling on University business. In addition, departments may work with the University Office of Risk Management (217-333-3113) to purchase insurance coverage on equipment as needed. The OBFS Business and Financial Policies and Procedures Manual Section 6, Insurance provides information to help units understand the types of insurance provided by the University. The University does not insure office contents (including but not limited to furniture, equipment, research, and scientific equipment) unless the unit head has arranged for insurance through the University Office of Risk Management and paid the required insurance premium.

A. University employees using University property assigned specifically to them are responsible for that equipment. They may be asked to reimburse the University if the equipment is lost, stolen, misplaced, or damaged because of neglect. Whether or not an employee is required to reimburse the department for lost equipment is determined by the unit head. Equipment lost or stolen should be reported to the University Police and OBFS Property Accounting. If the equipment was purchased with sponsored-project funds, the unit must also notify the loss to the appropriate campus OBFS Grants and Contracts Office.

Unit heads ensure that employees take adequate measures for the security of all equipment assigned to their units. In addition to unit heads, all individuals in a unit responsible for the security of equipment must consult with the campus University Police Department about appropriate security measures.

A. Once a department has made a thorough search, equipment that cannot be located during a physical inventory may be disposed according to instructions provided in the Biennial Physical Inventory Manual and explained during training. The department may complete the Request Disposal of Equipment as Scrap or Surplus form indicating that the listed items are "presumed scrapped without authorization." The completed form must be e-mailed to obfsuafrproperty@uillinois.edu with copy to the department head.

Inventory

Q. Is a physical inventory of equipment conducted? If so, who is responsible; how and when is it done?

A. The University conducts Biennial Physical Inventory with half of UIUC and UIC campuses performing their physical inventory each year and UIS performs their inventory only on odd years. OBFS Property Accounting e-mails property contacts and department head on each campus notification of the critical dates and expectations for conducting the physical inventory. Departments run their own inventory verification report in EDDIE: UR FINANCE/UF FIFA Fixed Asset by Organization Report. Access for the report in EDDIE is granted through your departmental Unit Security Contact .

Q. Where do I get the inventoried equipment lists?

A. Departments may obtain a current listing of their inventoried equipment by accessing and running the UR FINANCE/UR FIFA Fixed Asset by Organization Report in EDDIE. Training on how to use this report is available with our Biennial Physical Inventory Training which is offered on each campus as each year's biennial documents are sent.

Q. Where do I send my inventory lists?

A. You should keep these lists in your department. The inventory verification lists used to conduct the physical inventory, complete with notations, are to be retained in the departmental files and made available to auditors and OBFS staff upon request. However, Biennial Inventory Certification letters for all campuses may be mailed to Juana Rodriguez, 426 Marshfield Ave. Building, 809 S. Marshfield - MC 548, Chicago, IL 60612 or FAX to (312) 413-9487.

Q. I just received notice that our Biennial Physical Inventory is past due, and we never received the materials. What do I do now?

A. Contact OBFS Property Accounting advising them of your situation. No extensions can be granted. However, OBFS Property Accounting will resend the inventory notification and work with you to complete your physical inventory as soon as possible.

Q. Can I get an extension on the date the Physical Inventory Certification Letter is due?

A. Extensions are not granted on the due dates for the Biennial Physical Inventory Certification letter. The department is considered tardy until the certification letter is received by OBFS Property Accounting. However, OBFS Property Accounting appreciates e-mails and phone calls to update the status of the certification letter.

Departments should indicate the Chart and Organization Codes as well as the Organization Title of the Department when submitting Biennial Inventory Certification letters to OBFS Property Accounting. Failure to include this required information may result in the department being considered tardy.

Updating Records in FABweb

A. Departments have detailed information required for a complete Banner Fixed Asset record which OBFS Property Accounting staff does not know. Therefore, departmental staff must update the new acquisition record with commodity code, description, location, custodian, equipment manager, model, manufacturer, serial number, component, trade-in information. When existing equipment is re-assigned, only the department can change the location, custodian, and equipment manager information.

Rather than sending these changes to OBFS Property Accounting staff to enter, it is faster and more accurate for departmental staff to enter the information directly into FABweb for upload to Banner.

Q. Is there a way to do same type multiple item updates in FABweb?

A. No, each asset [PTag] must be updated in FABweb individually.

Q. When I went into FABweb to update a PTag, it wasn't available in FABweb. What do I do?

A. Review the asset record in Banner FFIMAST. Contact the OBFS Property Accounting staff to let them know this happened. OBFS Property Accounting will review the FABweb and Banner systems to discover why it is not available. One reason may be that the asset was transferred to your organization in Banner, but the transfer has not been updated in FABweb. In this case, the department that previously owned the equipment must submit an update of the record in FABweb by adding a punctuation mark in the description field of the FABweb record. This will allow the record to be properly refreshed in FABweb.

Tags (Origination, Permanent)

Q. I purchased 2 items that go on inventory. Why are there 10 tags outstanding in FABweb?

A. Origination Tags (OTags) are assigned according to the way the Purchase Order indicator was set for document accounting or commodity accounting in Banner. Requisitions/Purchase Orders acquiring equipment must use the commodity accounting method which means the document accounting box must be un-checked.

Even when the document accounting box has been un-checked, OTags are generated based upon each line item. When several line items are used to list the cost of a part of a piece of equipment, each line item will generate an OTag. For example, a vendor invoice is paid which lists 4 separate parts that make up one piece of equipment: Widget I $550.00 Widget II $450.00 Widget III $650.00 Widget IV $350.00

In this example, OBFS Property Accounting staff would process a JV to create 4 credit DTags which are used to inactivate OTags 2, 3, & 4. The debit DTags are used to update OTag 1 with the additional cost of the OTags 2, 3 & 4. The end result will be OTag 1 with four funding lines totaling $2,000.00.

In either case, OBFS Property Accounting staff can process journal voucher transactions to combine the appropriate line items for each piece of equipment so the department will have one OTag for each piece of equipment.

A. OBFS Property Accounting staff sends the Permanent Tags (PTags) to departments that do not assign their own Permanent Tags. After the Fixed Asset record for a permanent tag is completed in Banner [the department has submitted the unit modified OTag to Property Accounting and Property Accounting has reviewed, assigned a PTag and submitted the PTag to Banner Fixed Asset], OBFS Property Accounting sends the department property contact the physical tag to be affixed to the equipment.

Q. Why does it take so long to get our PTags?

A. PTags assigned by OBFS Property Accounting staff cannot be sent until the completed new acquisition record has been forwarded to UPAR who reviews and submits to Banner Fixed Asset. OBFS Property Accounting seeks to have the completed record of every new acquisition submitted to Banner within 30 days after the invoice is paid. Reasons for the delay may be one or more of the following:

delay in payment of the invoice if the department does not approve the invoice for payment in a timely manner or if the vendor delays sending the invoice for payment

delay in the submission of the updated record to OBFS Property Accounting if the departmental property contact does not complete the departmental information required before submission to OBFS Property Accounting

delay in submitting the completed records to Banner if OBFS Property Accounting staff are backlogged and do not submit the unit modified record to Banner in a timely manner

delay in sending the physical tag to the department if OBFS Property Accounting staff do not mail the physical tag to the department in a timely manner.

A. A missing asset tag may be replaced by contacting the OBFS Property Accounting processor assigned to your department who will create a new tag and mail it to you. However, the replacement tag will only have the Permanent Tag Number without the bar code.

Notifications

Q. I no longer work with property accounting matters, why am I being contacted by OBFS Property Accounting to submit acquisitions?

A. OBFS Property Accounting maintains a file of departmental contacts which has to be updated with new information. Whenever a change occurs, the department is responsible to complete and submit the Property Accounting Contact Change form .

Q. Why am I not getting the automatic FABweb messages when an item is inactivated?

A. You may not be listed as the department property contact. The FABweb e-mail messages advising departments that an Origination Tag (OTag) has been inactivated are sent automatically to the property contact. If you need to be added to the list of department property contacts, complete the Property Accounting Contact Change form and send it to Juana Rodriguez, 426 Marshfield Ave. Building, 809 S. Marshfield - MC 548, Chicago, IL 60612 or FAX to (312) 413-9487.

Q. I don't understand why I am being asked for information about an item that "didn't show up in FABweb?"

A. At times, the program used to update FABweb with new acquisition transactions fails to pick up all of them. One specific reason is when there are multiple items purchased on the same P-Card transaction and the first acquisition is a supply item. Therefore, we recommend that P-Card users not mix equipment acquisitions with non-equipment acquisitions. Purchase equipment separate from supplies and/or services.

Q. I got an e-mail telling me that I have 2 weeks to get my updated asset record submitted in FABweb. How do I find out about the item?

A. If you do not have access to FABweb, go to FABweb , click on the Logon button and follow the instructions for obtaining access. If you do have access to FABweb, once logged into FABweb, select the "new acquisition" option and all of your pending OTags will appear in FABweb. Additional information pertaining to the OTag record in FABweb may be found by referring to the Purchase Order/Invoice Voucher/P-Card/Journal Voucher. OBFS Property Accounting staff may assist you in finding and reviewing the purchase document.

Newly acquired equipment has a trade-in - Departments trading-in old equipment toward the purchase of new equipment must communicate this information to OBFS Property Accounting by entering information in FABweb so the equipment that was traded-in may be removed from inventory and any remaining book value can be added to the cost of the new equipment.

Equipment is being returned for credit - The credit transaction will then be handled properly and the equipment record will be removed from inventory.

Equipment items are being paid in multiple payments - Proper notification will reduce the amount of journal voucher entries required to correctly record the new acquisition. Such transactions require special handling and a special account code, 127190, is used in the payment process to record the purchase payments until the final payment has been made. At that time the new asset is recorded in Banner Fixed Asset.

Reports

Q. What is EDDIE? How do I use it?

A. EDDIE is the Enterprise Date Delivery Information Environment used to retrieve, view, and print financial and fixed asset reports. Access to EDDIE can be obtained by sending a request to your Unit Security Contact . Two reports are available for fixed asset users:

FINANCE UR Reports - UR FIFA Fixed Asset by Organization report will give you a listing of your active inventory of moveable equipment for use in performing your physical inventory requirements. Training on how to use this report is available with Biennial Physical Inventory training sessions.

UI2 FINANCE/Fixed Assets - FIFX Monthly Activity by Chart and Organization report is used to reconcile your departmental inventory activity with the transactions processed in Banner Fixed Assets each month. The report contains several sub-reports showing new acquisitions, funding changes, disposals, transfers in and transfers out. Training on how to use this report is available as part of the FABweb training sessions.

Codes

A. Account Codes indicate the type expense category for equipment purchased and indicates whether equipment is expensed or capitalized or is not equipment.

Equipment account codes are a part of the CFOAPAL: 127nnn equipment with cost from $500 to 2,499.99 161nnn equipment with cost from $2,500 to $4,999.99 163nnn equipment with cost of $5,000 and above

Commodity Codes classify equipment purchased. Departments must take extreme care in assigning the correct commodity code for a newly acquired asset because the commodity code determines the useful life of the asset which directly affects the annual calculation of depreciation. For example, the commodity code for computer hardware and peripherals for microcomputers is 204nn and for automotive vehicles and related equipment is 07000.

Q. Why are Location Codes important?

A. Location codes are extremely important not only for locating assets during the biennial physical inventory but also in the calculation of indirect cost rates.

Other

Q. Why is the historical cost of equipment more than what was paid for the item?

A. The total cost of purchased equipment includes shipping/transportation and installation costs.

The State Legislative Audit Commission University Guidelines require the establishment of accounting entities which classify all self-supporting funds into similar and related groups.

These groups of funds with similar activities are known as “Entities.” The Banner level 3 fund code is used to identify the entity of a self-supporting fund. A listing of entities is located in the Introduction to Self-Supporting Funds (GL 105) Participant Guide in Topic 1.4: Accounting Entities for Self-Supporting Fund-Defined by Banner Fund Code Hierarchy.

A. The fund codes for self-supporting funds fall into the numeric range of 300000 - 399999. They also have a unique fund type code as described in What are self-supporting funds?.

Q. What types of transactions are allowed on self-supporting funds? Are there any restrictions on self-supporting funds?

A. The State Finance Act restricts the use of these funds to the support, maintenance, and development of the self-supporting activity generating the revenue in the fund. In other words, expenditures are restricted to those necessary to fund the activities that generate the revenue. Self-supporting funds cannot be created to receive revenue that has its offsetting expenditures paid from appropriated or other University funds. Also, self-supporting funds cannot be generated or used by units for discretionary purposes.

Q. Our office will be involved in an activity that could be classified as a self-supporting activity (e.g., selling tickets to a luncheon for students and their parents), but the dollar level will be fairly immaterial. Is there a dollar/materiality level that we should consider prior to establishing a self-supporting fund? If the activity is not material enough to warrant establishing a new self-supporting fund, how should we record this activity?

A. Generally, a self-supporting fund will not be established unless at least $3,000 of revenue or expenses is generated each year. If an individual activity will not generate that amount, a number of smaller activities that are similar in nature can be combined into one fund.

Q. How do I determine if I need a self-supporting fund rather than an agency fund?

A. A self-supporting fund is appropriate when the University has a financial interest or risk associated with the activity. If the University acts simply as an agent or caretaker of the funds, an agency fund is appropriate for the activity.

Q. I need to set up a new self-supporting fund. What steps do I need to take?

The first three tabs on the file must be completed. The second tab, Self-Sup Fund Supplemental Info, requires rate development and Pro Forma Budget for three fiscal years. The third tab, Self-Sup Fund Attestation Stmt, attests that the Department Head is aware of this specific activity and that the requestor has unit authority to make the request. Email the completed form to cfoapalmaintenance@uillinois.edu. University Accounting and Financial Reporting will inform you when the fund is established.

Q. Will my self-supporting fund have default organization and program codes assigned to it? Can I use multiple organization and/or program codes with one self-supporting fund?

A. Default organization and/or program codes will be assigned if you check the “Yes” box in item 2f and enter the organization and program codes to be used as defaults on the Fund, Program, Index Code Request Form. If you are requesting a new program code in addition to a new fund code, University Accounting and Financial Reporting will add the new program code as a default if you checked the “Yes” box as directed above.

Multiple organization and/or program codes may be used with one self-supporting fund if the NACUBO functions of the programs are consistent with the fund type and entity codes assigned to the fund.

Q. How do I make deposits into my self-supporting fund, and how is revenue recorded in a self-supporting fund?

A. Deposits are made through the applicable campus' University Student Financial Services and Cashier Operations (Cashiering) office on a Report of Money Received or Report of Cash Sales form and are recorded to the revenue account code entered on the form.

Q. Where do I find the balance of my self-supporting fund?

A. A difference between self-supporting funds and other University funds is the location of the activity’s balance. The balance for University funds that are budget-based is found in the Operating Ledger. For self-supporting funds, the Operating Ledger reflects only the current year revenue and expense activity. To determine the financial status of a self-supporting fund, the unit should monitor the balances, most importantly the Fund Balance, in the General Ledger.

As revenue and expenses are recorded in the Operating Ledger of a self-supporting fund, General Ledger balances, such as Claim on Cash and Fund Balance, are simultaneously updated in the fund. The Fund Balance reflects the accumulation of all inception-to-date revenue, expense, and transfer activity in the fund. Banner form FGITBSR and the FIGL Detail General Ledger Statement in EDDIE and View Direct are available to see the fund balance of your self-supporting funds.

Q. What happens if I generate a profit/deficit with my self-supporting fund? If self-supporting funds are supposed to be “break-even” funds in theory, what are the ramifications of operating at a profit/deficit?

A. The State Legislative Audit Commission University Guidelines detail the amount of cash that self-supporting funds can retain at year-end. For the majority of the entities, the computation of “Excess Funds” is done by entity and campus (see What are self-supporting funds?). The Excess Funds computation is complicated; therefore, the following formula displays the calculation at a high level that you may use to determine your risk of having excess funds. The amounts used are as of the fiscal year-end.

Cash
Less - highest month expenses (by entity). If month not known, use average monthly expenses.
Less – deferred revenue and deposits
Less – accounts payable
Less – accrued payroll
Less – obligations paid in the grace period (July and August)
_________________________________
Excess Funds (if amount is positive)

The Guidelines also state that entities may not have cash deficits for an entire fiscal year as this indicates that the self-supporting activity is being subsidized. Individual deficit cash balances may be reviewed by the Office of the Executive Assistant/Assistant Vice President for Business and Finance and a deficit reduction plan may be required and/or the fund may be charged interest expense based on the deficit amount.

Q. What is “unrelated business income” (UBI) and how does it relate to the activity that takes place in my self-supporting fund?

A. Unrelated business income is derived from an activity that meets all of the following criteria:

The activity is a “trade or business,” i.e. there is an expectation of a profit from the operation,

The activity is regularly carried on, and

The activity is not substantially related to any of the University’s exempt purposes.

Federal tax law provides the following exceptions, modifications and special rules that must be considered when determining if an activity is an unrelated trade or business.

The law provides an exception for a trade or business if it is (1) conducted primarily for the convenience of students, employees, patients, etc.; (2) conducted with a volunteer labor force; or (3) selling merchandise substantially all of which was received as gifts or contributions.

Income from dividends, interest, royalties and the rental of real property generally is excluded from the unrelated business income computation, but a few exceptions to this rule exist.

Income (ticket sales, etc.) from an athletic program including the sale of exclusive broadcasting rights is not included as unrelated business income; however, commercial advertising sold by the University in publications and athletic broadcasts may be considered unrelated.

Certain “qualified sponsorship payments” are not included in unrelated business income. A qualified sponsorship payment is any payment to a tax-exempt organization by a person in a trade or business where there is no arrangement or expectation of any substantial return benefit by the payer.

Presentation of performing arts by students is a related activity, and the appearance of professional artists may also be related. The IRS determines whether the income derived from professional entertainment events is considered unrelated business income by looking at how the event is conducted, not the content of the event.

Retail sales from the operation of a general book and supply store on the University’s campuses for the convenience of the students, faculty and staff generally are exempt from unrelated business tax. However, not all sales are necessarily considered related. Items that are directly related to the University’s educational purposes are exempt when sold to students, faculty and staff as are some low-cost non-educational items that are in recurrent demand, such as toiletries, University insignia items, newspapers and magazines, etc. When book stores are open for sales to the general public, sales of similar items to the general public do not fall within the convenience exception and should be reported as unrelated business income.

Food service activities open to the general public are not related to the University’s exempt purposes and are generally considered unrelated business activities. However, food service at an exempt activity where the food is available only to attendees is exempt. Catering services to non-University customers constitute unrelated business income.

Income from scientific research carried on in the public interest is exempt from unrelated business income. The term “research” does not include ordinary testing or inspection of materials commonly carried on as an incident to commercial or industrial operations where “a standard procedure is used, no intellectual questions are posed, the work is routine and repetitive and the procedure is merely a matter of quality control.” Income from such testing generally would constitute unrelated business income.

While the University must report unrelated business income, expenses that are directly related to the production of that income are allowed as deductions in computing unrelated business taxable income.

However, when facilities or personnel are used both to carry on exempt activities and to conduct an unrelated trade or business, expenses, depreciation and similar items attributable to the facilities or personnel must be allocated between the two uses on a reasonable basis.

For more information and a questionnaire that will assist in determining whether an activity should be reported as unrelated business income, please refer to Section 18.13 of the OBFS Business and Financial Policies and Procedures Manual.

Q. How does the BBA (budget balance available) in my self-supporting fund roll into the next fiscal year? If I have a balance or deficit remaining on a self-supporting fund, will it keep rolling forward from year to year?

A. The BBA on a self-supporting fund does not roll forward into the next fiscal year. The BBA compares how actual revenues and expenses are doing in relation to budgeted revenues and expenses. At the beginning of the fiscal year, you should provide to your campus Budget Office new fiscal year budgets that reflect your anticipated revenue and expenses. Only open encumbrances are rolled forward in the operating ledger to the new fiscal year. General ledger balances, such as cash and fund balance, are rolled forward to the new fiscal year. (See Where do I find the balance of my self-supporting fund?)

Q. How do I adjust the budget in my self-supporting fund?

A. Self-supporting fund budgets may be adjusted by processing a journal voucher in Banner using rule code 260 for a temporary budget revision or rule code 261 for a permanent budget revision.

A. No, units are not allowed to perform any type of funds transfers from their self-supporting funds to any other fund types within their own unit or a different unit. Transferring specific expenses (e.g., a p-card expense or an invoice voucher) may be allowable given the particular circumstances; however, completing lump sum transfers or budget transfers between self-supporting funds and other fund types is not allowable.

Q. Are there any special year-end requirements related to self-supporting funds?

Q. What size of a self-supporting contract needs the involvement of Grants & Contracts?

A. Technical testing agreements and other contracts greater than $5,000 should be reviewed by Grants & Contracts before a self-supporting fund is established and any work is begun.

Q. What happened to all of the money I had in my self-supporting fund at the end of June?

A. Cash, other assets, liabilities and fund balance roll forward at fiscal year-end and can be viewed using a balance sheet type report. The operating statement shows only the revenues and expenses for the current fiscal year. (See Where do I find the balance of my self-supporting fund?)

Q. Our office made a mistake and deposited gift money into a self-supporting fund. How do we get this fixed?

A. If gift money is incorrectly deposited into a self-supporting fund, contact University Accounting and Financial Reporting (UAFR) at (217) 333-4568 for assistance to make the adjusting entries. Units do not have authorization to make these correcting entries. Once you contact the UAFR staff, you will be asked to provide the following information and documentation: (1) the full C-FOAP string where the gift money currently resides; (2) the exact dollar amount that needs to be transferred to the Banner gift fund; (3) the Banner gift fund where the gift money needs to be transferred to; and (4) copies of any gift documentation from the donor (e.g., a letter, copy of the check) and a completed gift transmittal form summarizing the donor information and the related donation (see http://online.uif.uillinois.edu/Transmittal/ for the website containing the gift transmittal forms). Once the UAFR staff receives this information and documentation from your unit, they will work with the University of Illinois Foundation to make the appropriate adjusting entries.

Q. Our office received a payment from an outside organization in connection with a sponsorship agreement. Should this payment be deposited in a self-supporting fund?

A. If the sponsorship payment is determined to constitute advertising, it is considered a non-qualified sponsorship and should be deposited in a self-supporting fund and may create unrelated business income (UBI). (See What is “unrelated business income“ (UBI)...?). A qualified sponsorship payment for which the sponsor will receive no substantial benefit other than the use or acknowledgement of the business name, logo or product lines is considered a donation and should be recorded as a gift.

A. No, expenses related to fundraising/development activity cannot be posted to self-supporting funds unless specific exemptions exist. All expenses for fundraising activity generally need to be posted to an applicable fundraising/development C-FOAP string on either a gift, state, or institutional cost recovery (ICR) fund. See Section 11.6 of the OBFS Policies and Procedures Manual for further guidance on these restrictions.

Q. We need to terminate one of our self-supporting funds that we no longer use. How do we get this done?

A. A self-supporting fund cannot be terminated until all balances, encumbrances, etc. have been cleared from the fund. Once the fund has been cleared of all activity and balances, send an email request to cfoapalmaintenance@uillinois.edu asking to terminate the fund. The UAFR office will investigate the fund to ensure that all balances have been cleared, and will then terminate the fund.

Q. My department sells t-shirts, caps and other items to students, faculty, staff and alumni. Is there anything special we need to be aware of with this activity?

A. When a department sells tangible personal property such as t-shirts, caps or other items to students, faculty, staff, alumni or the general public for use or consumption, the sales are subject to state and local sales tax. The sales tax must be collected, reported and remitted to the state unless a specific exemption applies to the sale. Units should contact University Accounting and Financial Reporting to determine the correct procedure for reporting and recording the sales and sales tax amounts for each campus. University Accounting and Financial Reporting files the required sales tax returns for each campus under separate registration numbers. See Section 18.6 of the OBFS Financial Policies and Procedures Manual for further guidance on this issue.

If units maintain an inventory of items for sale, the inventory must be controlled and the value must be reported at year-end on the Fact Sheet for the fund involved.

Further, if the sales are not related to the exempt purposes of the University, the sales may create unrelated business income. See and Section 18.13 of the OBFS Financial Policies and Procedures Manual for further guidance on this issue.

Q. My department keeps a supply of items on hand for sale to other University departments, students, faculty, staff and the public. How should we handle this issue?

A. Campus units must maintain appropriate inventory control of each item of merchandise for resale. Use of a perpetual inventory system is the preferred method of inventory control and valuation. Campus units must complete a physical count and valuation of merchandise for resale at least once each year and report the results of that physical count to University Accounting and Financial Reporting, generally on the Fact Sheet submitted at year-end. See Section 5, Receivables of the OBFS Financial Policies and Procedures Manual for further guidance on this issue.

Q. I have a question that is not on this listing. Who do I contact?

A. All other questions regarding self-supporting funds can be directed to University Accounting and Financial Reporting at (217) 333-4568. A Who to Ask list is located on the UAFR website.

State Fund FAQs Answers

Q. What are state funds?

A. State funds include appropriations from the University Income Fund (from tuition, fees, and miscellaneous income), the General Revenue Fund (received from the State of Illinois) and several other special purpose funds.

Q. How are state funds identified in Banner?

A. State Funds can be identified in Banner by examining the Fund portion of the C-FOAPAL. The Fund range in Banner is between 1000YY-1800YY (the last 2 digits designate the appropriation year).

Q. What type of transactions are allowed on state funds?

A. Expenses must relate to the specific appropriation year. For example, it is not appropriate to transfer expenses to the current year state fund if the expenses were incurred in the previous fiscal year. There are also certain restrictions on the types of expenditures allowed on state funds. For example, alcohol and late payment "penalty" charges are not allowed on state funds. For a more detailed analysis on allowed expenditures, please see the Section 8, Payments and Reimbursements. Other questions regarding allowable payments on state funds can be directed to University Payables Customer Service 217-333-6583.

Q. How does the state appropriation year differ from the University's fiscal year?

A. The state appropriation year generally corresponds with the University's fiscal year which is July 1 through June 30. However, certain transactions are allowed during the "lapse period" which is July and August. Two appropriation year funds are open during July and August, the current year state appropriations and the prior year state appropriations. See below for allowed activity during this time period.

Q. What is the "lapse period" and what type of expenses are allowed during this time period?

A. Certain types of transactions during the period of July 1 - August 31 (referred to as the lapse period) are allowed for the prior year state fund. During the lapse period, there will be two state fund codes which will be open for transaction processing: the old year state fund and the new year state fund (as noted above, the last 2 digits designates the appropriation year). Please be careful and accurate when selecting the appropriate fund code. Spending during the lapse period is limited to charges for goods or services contracted for or received prior to July 1.

Q. When is the last time I can post corrections to my prior year state fund?

A. The last day to process corrections on the prior year state fund is August 31. The prior year fund code will be terminated on September 1. The fund essentially will be closed and no more transactions will be allowed. There may, however, be a small number of adjustments posted in September by OBFS personnel.

Q. Can I perform labor redistributions on wages previously charges to state funds?

A. If the wages were incurred on the current year state fund, labor redistributions are allowed. If the wages were incurred on the prior year state fund, and the lapse period is over, it is not appropriate to transfers the charges off the state fund. Performing a transfer such as this creates a balance in fund 300011 (Payroll Suspense Fund) because the fund code has been inactivated. If your organization has a balance involving this Payroll Suspense Fund, it needs to be investigated and corrected with labor redistributions. Questions regarding the appropriate method of clearing balances in the Payroll Suspense Fund can be directed to University Accounting and Financial Reporting (UAFR), 217-333-4568.

Q. Do I have to change payroll appointments, P-Card defaults, or Index Codes at the start of the new fiscal year to reflect the new year state fund code?

A. Payroll appointments, P-Card defaults, and Index Codes will be changed automatically for you on July 1 to reflect the new year fund code. However, if something new is added after that date, our automated method of changing these might not correct this. It is always a good idea to verify that everything has been updated properly to the new year fund code.

Q. How does my department track expenses related to state funds?

A. Since everyone in the University that has some form of state funding uses the same fund code, specific departmental activity is tracked by using your department Organization and Program codes.

Q. My department has new activity involving state funds that we want to track separately. How do we establish a new program code?

A. You can request a new program code to track this activity by completing the Fund, Program, Index Code Request Form . Instructions are available on the FPI Code Request-Instructions tab within the form.

Q. How does my BBA involving state funds roll into the next fiscal year? If I have a balance remaining on a state fund, will it keep rolling forward from year to year?

A. The BBA at the end of fiscal year will roll into the next fiscal year. This BBA is calculated as Budget less Expenses less Transfers. This amount will be shown in Banner in the next fiscal year as a budget amount in account code 109910- Budget Balance Forward. However, the BBA related to the prior year's appropriation will not roll into the next fiscal year. For example, BBA in fund code 100005 will not roll into FY07.

Q. Who do I ask if I have a question regarding the budget amount given to my department?

A. Questions regarding the budget allocation process can be directed to the respective campus budget office.

Q. My department needs to transfer state funding to another department. Can I use an expense transfer to accomplish this?

A. No, an expense transfer can not be used in this situation. If state funds are being transferred from one department to another, the respective budget office must perform the budget transfer for you.

Q. Does it really matter what account code I use when submitting expenses on state funds?

A. As with any funding source, the account code is extremely important for accurate internal and external reporting. However, state funds have additional reporting requirements which make accurate account codes critical. Please pay special attention to P-Card charges. P-Cards have default account codes established which may not be accurate depending on what was purchased. If you have questions for which account code to use, contact UAFR at 217-333-4568.

Q. Our department received a refund check related to expenses previously paid from state funds. Can I deposit this check directly into my state fund, and is this the appropriate accounting treatment?

A. Refunds received on expenses previously paid from state funds can be deposited through Cashiering (please attach all documentation available regarding the original expenditures). OBFS-University Accounting and Financial Reporting staff will examine the documentation and determine if the expenditures were made from the General Revenue Fund or the Income Fund. If the expenditures were made from the General Revenue fund, OBFS staff will remit the refund to the State of Illinois (because the State of Illinois funded the original payment). If the payment was made from the Income Fund, and if the original appropriation year's fund code is still active in Banner, we will credit the original FOAPAL. If the original appropriations year's fund code is no longer active, the funds will be remitted to the University miscellaneous income fund(since the credit to the original year's appropriation fund code is not possible, and it is not appropriate to credit a different funding source).

Q. If we use a specific program code with our state funds, is it allowable to use this same program code with ICR funds (or vice versa)?

A. Yes, it is allowable to use the same program code with both ICR and state funds as long as the NACUBO function is identical and is allowable for both fund types.

Q. If I want to complete an expense transfer from/to a state fund, what rule code would I use on the state fund side of the JV?

A. Rule code 170 ("JV - State OPAL w/ Clearing") should be used with the state fund for expense transfers from/to a state fund.

Q. Our unit would like to pre-pay some expenses for the upcoming fiscal year using current year state funds. Is this allowable?

A. No, pre-payment of future expenses for an upcoming fiscal year using current year state funds is not allowable. If a unit wants to pre-pay expenses, they should use local funds (e.g., gift funds, ICR funds, etc.) to pay for them, and then later transfer the applicable amount of the expense to the appropriate fiscal year's state fund.

Q. Our unit made a mistake and charged an expense for the upcoming (or previous) fiscal year on the current year's state fund. How do we correct this?

A. If an expense gets charged to an incorrect state fund (e.g., an expense for the current fiscal year is charged to the previous fiscal year's state fund by mistake, or vice versa), the unit must complete an expense transfer to move the expense to the applicable state fund. This only applies during periods 01 and 02 (i.e., during July & August), when the lapse period is still open. The lapse period is the time in which the current fiscal year's state funds and the previous year's state funds are open at the same time. However, no more spending or corrections involving the prior year state fund are allowed once the lapse period is over (this is anytime after the close of period 02).

Q. Is it allowable to process a split-funded purchase order or invoice voucher (i.e., a purchase order or invoice voucher that includes both state and non-state C-FOAP strings on the same purchase order or invoice voucher)?

A. No, it is not allowable to process a split-funded purchase order or invoice voucher - i.e., it is not allowable to process an invoice voucher or purchase order that contains both state and non-state C-FOAP strings on the same invoice voucher or purchase order. This creates check processing problems in Banner Accounts Payable, and is not allowed for this reason.

Q. Our unit will have a deficit (or surplus) in our state CFOP at the end of the fiscal year. How is this handled?

A. Each campus' budget office addresses these state fund deficits/surpluses in different ways. See below for details on how each specific campus deals with these issues:

UIUC

At the Urbana-Champaign campus, the Budget Office distributes a report of period 12 state balances to the colleges. The college is then responsible for communicating with the Budget Office on how they would like these state deficits/surpluses handled.

The majority of state surpluses are assigned to institutional funds (i.e., ICR funds). In limited cases, these state surpluses can also be reassigned as an increase in budget for state funds in the following fiscal year, if approved by the Budget Office. For larger balances (i.e., balances > $50,000), the Budget Office prefers to assign the surpluses to the ICR fund balance for the current fiscal year. Then, if the college prefers, they can exchange those funds for state balances for the following fiscal year, if approved by the Budget Office. Units also have the option of simply leaving this balance in their ICR funds. In summary, the Budget Office will transfer ICR funds to the college for any state surplus that exists at year end.

State deficits can be covered several different ways, depending on the size of the deficit. Typically, the college completes an exchange with their ICR funds to cover the state deficit - i.e., the college transfers institutional funds to the campus to cover the amount of the state deficit. For smaller state deficits (i.e., deficits < $25,000), the college could also transfer the excess expenses to a gift fund, ICR fund, or self-supporting fund (as long as the expenses are allowable on those funds). However, these expense transfers should be used for small deficits only (< $25,000). If larger expense transfers are needed, the college must contact the Budget Office to discuss.

Closing entries like the ones described above are limited to one per department, unless the entries are submitted to the Budget Office on a Budget Adjustment Request (BAR) form. If these closing entries are submitted on a BAR form, then there is no limitation on the number of closing entries.

In summary, the sum of all of the closing entries must completely offset the state surplus/deficit by the end of the lapse period.

UIC

At the Chicago campus, exchanges with ICR funds are typically made to offset these state fund surpluses/deficits. Colleges and departments generally have until the end of period 12 to request budget exchanges between ICR funds and state funds to cover any state fund surpluses/deficits. These budget adjustment requests are sent for review to the Budget Office at the UIC campus.

During period 14, the UIC Budget Office reviews the state fund budget balances at the College/Vice Chancellor level to determine if there are any overdrafts. Any state fund rollup balance overdraft is transferred and assessed by the Budget Office to the College/Vice Chancellor year-end special ICR C-FOP string via a state-for-ICR budget exchange to eliminate the deficit. The Budget Office also works with the College/Vice Chancellor level fiscal officers during period 14 to exchange any surplus state rollup balances for ICR funds.

After the lapse spending period, any remaining positive or negative prior fiscal year state fund rollup balances are reviewed with the Provost's Office, and appropriate budget adjustments to reflect lapse period activity are posted to the College/Vice Chancellor level ICR year-end special C-FOP string by the Budget Office during the next fiscal year. The determination of action regarding individual department level deficits/surpluses is at the discretion of the applicable Dean or Vice Chancellor.

UIS

The Springfield campus does not make any type of closing entries to adjust for state fund deficits or surpluses. All spending is viewed as a whole, and the University's Income Fund would cover any deficits that may remain.

UA

Budget transfers are completed at June 30 for State funds under University Administration at the end of the fiscal year to exchange any state fund surpluses or deficits for administrative allowance or ICR funds. This is done at the C-FOP level during period 14. Also, this budget transfer process is completed once again after the end of the lapse period to account for any activity posted during July and August on the prior year state fund.